Planning To Upgrade or Buy Your First Car Soon?
Whether you need a reliable hatchback for your family or a sporty saloon for executive commuting, it’s no secret that motoring costs can stack up quickly. Fuel, insurance, tax, tyres and servicing make up your regular expenses, but you might also face costs for repairs and perhaps some upgrades too.
No matter how, where or why you drive, here’s what to expect when it comes to the cost of running a car in the UK.
1. Purchase Price vs. Depreciation
Many motorists know that the biggest risk associated with buying a brand-new vehicle is that of depreciation.
It’s estimated that some new cars lose more than 60% of their value within three years of ownership. Buying a used car makes more sense for motorists who aren’t looking for a long-term investment. If you’d like a flashy car, you can still buy vehicles in prime condition and under a year old – and these nearly-new cars come with attractive discounts too.
2. Insurance
This major ongoing expense is a legal requirement, so there’s no getting out of paying for cover for you and your car. In the UK, the cost of car insurance is determined by factors, including:
- The drivers’ age, background and experience
- Where the driver lives
- Any points or special terms on the driving licence
- Claims history or previous accident involvement
- Where the car will be kept
- How the car will be used
- The make, model and specifications of the car
- Any modifications on the vehicle
Car insurance is typically most expensive for younger drivers who’ve just passed their test. Many new drivers choose to consider a telematics insurance policy, which may offer a discount on renewal for safe driving habits.
3. Fuel, Tax and Day-to-Day Running Costs
Routine running costs might not feel too steep on a day-to-day basis but can quickly add up. If you’re driving a car with a very powerful engine, you can expect to spend more on fuel than you might for a mid-range diesel engine, for example.
Do your research to find out which car models are best suited to you and your driving style. You’ll want to strike a balance between comfort and affordability, keeping your daily driving efficient and stress-free.
4. Maintenance and repairs
Regular servicing is essential for keeping any car on the road and running well. You’ll want to make sure that any smaller issues get investigated as soon as possible, preventing large and complex problems from developing.
Don’t forget that on all vehicles over three years of age, there’s also a legal requirement to get an MOT test. This involves a formal mechanical check on the most critical components, carried out at an approved garage.
5. Hidden costs
Finally, try not to oversee the hidden costs involved with driving.
From toll bridges to parking fees, certain areas and journeys could ask more of your pocket than you might expect. Staying prepared, driving carefully and doing your research will always pay off!
